KER: 1000$ KRD (SN) BMO H VAS ER: 05 RD 12%) CIBC ER: 100$ RD (151...

 

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KER: 1000$ KRD (SN) BMO H VAS ER: 05 RD 12%) CIBC ER: 100$ RD (151 RBC S Investor Public The diagram above illustrate the structure of a small financial market composed of three banks. Suppose that CIBC customers lost 50$ in their laundry, and BMO RBC costumers decided to keep 200$ in cash under their mattresses. RBC BMO customers do not report any liquidity loss. 1. Complete the boxes assuming that BMO's customers deposit $50 000. 2. Calculate the total money supply. Show the basic calculation. 3. How much money does the banking system create?. 4. Calculate the money multiplier. What this number mean? Show the basic calculation KER: 1000$ KRD (SN) BMO H VAS ER: 05 RD 12%) CIBC ER: 100$ RD (151 RBC S Investor Public The diagram above illustrate the structure of a small financial market composed of three banks. Suppose that CIBC customers lost 50$ in their laundry, and BMO RBC costumers decided to keep 200$ in cash under their mattresses. RBC BMO customers do not report any liquidity loss. 1. Complete the boxes assuming that BMO's customers deposit $50 000. 2. Calculate the total money supply. Show the basic calculation. 3. How much money does the banking system create?. 4. Calculate the money multiplier. What this number mean? Show the basic calculation